Lululemon athletica delivered an upbeat fiscal first quarter and full-year earnings forecast, slotting into a pattern seen across retail this earnings season as companies catering to higher-income shoppers have thrived. Lululemon (LULU) said late Thursday it earned $1.48 a share on revenue of $1.61 billion.
In this post
Why is Lululemon stock price so high?
LULU stock has been powered in the past by its strong execution of ambitious growth goals, and it has its sights set on more of the same in the future. Since going public back in 2007, the company has compounded earnings per share at an exceptional 38.3% annualized rate, making it a stellar growth stock.
Is Lululemon stock a good investment?
The current stock price offers “an attractive entry point,” Greenberger said, recommending that “long-term oriented investors take another look at this quality asset on sale.” Greenberger upgraded her rating of Lululemon to Overweight from Equal-weight, but lowered her target for the stock price to $303 from $339.
Is Lululemon stock overpriced?
My calculation finds that LULU is relatively fairly valued/slightly overvalued based on a $238.31/share target price.
Why did Lululemon go up?
The price hike comes as Lululemon sees surging costs for raw materials such as petroleum. In a new note, Citi analyst Paul Lejuez estimated that 75% of Lululemon’s product assortment is petroleum-based.
Why you should not buy Lululemon?
Lululemon’s supply chain is not certified by labour standards that ensure worker health and safety, living wages or other labour rights. There is no evidence the brand implements practices to support diversity and inclusion in its supply chain, and it has made little to no progress toward payment of a living wage.
What is the future of Lululemon?
lululemon’s strategic growth plan is underpinned by the Company’s strong financial position. In addition to doubling men’s and digital, and quadrupling international revenues, other key financial goals of the Company’s Power of Three ×2 growth strategy include: Total net revenue CAGR of 15% between 2021 and 2026.
How is Lululemon doing financially?
Lululemon sees sales in fiscal 2022 in a range of $7.61 billion to $7.71 billion, up from a prior forecast of $7.49 billion to $7.62 billion. Analysts were looking for $7.54 billion, according to Refinitiv data.
Who is Lululemon’s biggest competitor?
Let’s take a look at Lululemon’s most aggressive competitors and alternatives, giving the company a solid competition.
- Athleta – a Gap subsidiary. In 2008, Athleta was bought by The Gap for $150 million.
- Victoria Sports.
- Under Armour.
- Prana – a Columbia sportswear subsidiary.
- Nike.
- Adidas.
- Puma.
- Sweaty Betty.
Will LULU stock go up after earnings?
Lululemon Stock Is Up After Earnings. Wealthier Consumers Are Still Spending.
Is Lululemon still popular?
No list of the most popular athleisure brands would be complete without lululemon.
What type of people buy Lululemon?
The current target market for Lululemon is men and women in the upper middle class between the ages of 18 and 35 with a fitness mindset. Approximately 41% of the world population is between the ages of 18 and 35. Although Lululemon is a worldwide company North America makes up for almost 95% of its sales.
Does Lululemon use child labor?
Our CoC is our highest ethical policy and sets out our zero tolerance approach to practices of forced or involuntary labour, child labour, and human trafficking of any kind within our operations and supply chain.
What’s the hype with Lululemon?
Fans of Lululemon rave over the perfect design and quality of their clothing that truly performs on the mat and on the go. The brand is most well-known for their iconic Align yoga line, which includes leggings, pants, joggers, and sports bras.
Will Lululemon do a stock split?
On June 9, the company said its shareholders approved a plan to split its stock on a two-for-one basis announced in March. The company will have about 108 million shares issued and outstanding post the stock split, Lululemon said in a statement.
Who does Lululemon partner with?
Share this Story: lululemon Partners with COC and CPC as Official Outfitter of Team Canada through 2028.
What are the pillars of Lululemon?
Our strategy is organized into three intertwined pillars: Be Human, Be Well, and Be Planet. Each pillar has a vision, set of goals, and plan.
Why is Lululemon so successful?
The technological advances lululemon has made in clothing makes it harder for competitors to emulate its success. It also enables lululemon to charge higher prices and have merchandise that rarely goes on sale. lululemon’s focus on innovation not only lies within its products but within its stores.
What brand is closest to Lululemon?
Here are brands that are awesome alternatives to Lululemon apparel.
- Aerie.
- Vitae.
- Joe Fresh.
- Girlfriend Collective.
- Alo Yoga.
- Reekbok.
- Under Armour.
- Nike.
Is Lululemon a monopoly?
Lululemon – LULULEMON Market Structure Lululemon is under monopolistic market structure.
Is Lululemon a buy right now?
– Hold. Zacks’ proprietary data indicates that lululemon athletica inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the LULU shares relative to the market in the next few months.